WB: Centre okays Salim Group's Rs 2,250 cr FDI

New Delhi, Feb 22: The Centre today cleared a Rs 2,250 crore (500million dollar) foreign direct investment (FDI) proposal from theIndonesian-based Salim Group and Ciputra Groups for developinginfrastructure projects including special economic zones (SEZs),townships and housing in West Bengal.

The Cabinet Committee on Economic Affairs, at its meeting here,gave its approval to the New Kolkata International Development Pvt Ltd(NKID), set up by the two Indonesian groups, ''to make downstreaminvestments in Indian companies developing various components of theintegrated infrastructure development project comprising townships,housing, SEZs, Industrial parks and related infrastructure''.

Giving details of the project, Finance Minister P Chidambaram toldnewspersons that the approval would be subject to two conditions.

First, the downstream investment will be as per the guidelinescontained in Press Note 9 of 1999. Secondly, the constructiondevelopment activity will comply with the conditions of Press Note 2 of2005 and Press Note 2 of 2006 as applicable.

The NKID, an operating-cum-holding company, will set upinfrastructure projects either through 100 per cent owned specialproject vehicles or joint ventures with third parties including theWest Bengal Industrial Development Corporation (WBIDC).

The high-profile Salim group last year announced investmentsexceeding Rs 2,000 crore in the state, including in the project todevelop an integrated township near Kolkata in a joint venture withnon-resident Indian, Prasoon Mukherjee, promoter of the UniversalSuccess Enterprise (USE group).

NKID has obtained the necessary no-objection certificate fromKolkata West International City Pvt Ltd and its Indian partnerDhanalakshmi Abasan Pvt Ltd.

NKID has entered into Development Agreement with the stategovernment and West Bengal Industrial Development Corporation Ltd toact as developer for the proposed ''New Kolkata Project''.

The Salim Group, one of Asia's leading business groups, will hold40 per cent of NKID's equity. It has already invested in a project fordeveloping an integrated township in Kolkata in a joint venture.

UNI